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Shalom. Laura and I are thrilled to be back in Israel. We have been deeply moved by the celebrations of the past two days. And this afternoon, I am honored to stand before one of the worlds great democratic assemblies and convey the wishes of the American people with these words - "Yom Haazmaut Sameach" (Happy Independence Day).

Defense Minister Ehud Barak is feeling the heat of the continuous Palestinian rocket attacks on Sderot from Gaza. This after two Sderot brothers were badly injured on Saturday when Qassam rockets slammed into the town from Beit Hanun less than a mile away. One of the boys had his leg amputated, the other is still in serious condition. That was the background to Defense Minister Barak's closed door briefing to the Knesset Foreign Affairs and Defense Committee. After talking with several committee members, IsraCast is of the view that Barak will now be forced to consider more drastic steps to halt the rocketing - this could include giving the green light for a major ground offensive into Gaza, if there is no halt to the Qassams.

Prime Minister Ehud Olmert has declared that Israel will not acquiesce in Iran developing nuclear weapons. Briefing the Knesset Foreign Affairs & Defense Committee, the Israeli leader repeated the long-standing position of the Jewish which Iranian President Mahmoud Achmadinejad threatens to wipe Israel off the map. Likud MK Silvan Shalom, a former foriegn minister, agreed that Israel must also consider the military option in confronting an Iranian nuclear threat but he was also convinced that stiffer sanctions could dissuade the Iranians as they had Libya and North Korea. Meanwhile, Israeli Foreign Minister Zippi Livni with Palestinian representative Ahmed Queira met in Jerusalem to start discussing the 'core issues' such as borders, security, Jerusalem, the refugees etc. But this could trigger the breakup of the current governmnent coalition.

If Prime Minister Yitzhak Rabin had not been assassinated twelve years ago by Israeli fanatic Yigal Amir would Israel now be at peace with the Palestinians? It is a question that has cropped up on October 24th the day the Jewish state officially marked the tragedy that has stunned Israelis ever since. IsraCast assesses the political climate leading up to the Rabin assassination and subsequent events leading to the upcoming Annapolis peace conference.

In spite of intense diplomatic activity scheduled for this fall, little will likely change in the Israeli-Palestinian confrontation. IDF Maj. Gen. (res.) Shalom Harari sees slim chance of the international conference achieving little more than vague understandings because Palestinian President Mahmoud Abbas cannot exercise any control over his own West Bank terrorists. Meanwhile, the Hamas regime in the Gaza Strip is locked in an escalating confrontation with Israel. This week a terrorist rocket scored a direct hit on an Israeli kindergarten in Sderot that was empty of children at the time. In an interview with IsraCast Gen. Harari, now an analyst at the Herzliya Center, warned that if a Qassam rocket hits a crowded synagogue or kindergarten it will trigger a massive IDF operation into Gaza.

The Sharm el Sheik summit was a high- profile show of solidarity with Palestinian President Mahmoud Abbas in his bitter confrontation with Hamas, the radical Islamists. After Hamas gunmen routed Fatah forces from the Gaza Strip, the Palestinians now have two separate governments- Gaza is run by Hamas while Fatah - supported Abbas rules on the West Bank. Former British Prime Minister Tony Blair is expected to arrive soon as a peace envoy. Maj. Gen. ( res) Shalom Harari told IsraCast that Tony Blair should draw on his Northern Ireland experience in order to make any progress in the Israeli- Palestinian conflict.

Hamas has released a recorded message from captured IDF soldier Corporal Gilad Shalit. The message is posted on the Web site of Hamas's military wing. Israeli officials are considering their reaction to the recording. IsraCast notes the proposal of Maj. Gen. (res) Uzzi Dayan who proposes that Israel should condition the Hamas release of Shalit as the first condition of any humanitarian supplies to the Gaza Strip.

As Israel's Independence Day draws near, the Jewish state faces a range of evolving prospects and dangers. At the same time, if Prime minister Ehud Olmert survives the Winograd Commission into the Second Lebanon War, he will have likely have new defense and finance ministers at his side. IsraCast analyzes the current situation and the domestic political scene and possibly some dramatic changes.

What are the prospects for the vaguely worded agreement hammered out by Hamas and Fatah in Mecca, Saudi Arabia? Shalom Harari, a senior reserve officer in the IDF Intelligence Corps and analyst at the Herzliya Counter - terrorism Center centre assesses various aspects of the accord aimed at ending the bloody Palestinian power struggle that has killed dozens of Palestinians in recent weeks. Interviewed by IsraCast, Harari also analyzes the possible impact of the Mecca Accord on Israel and the ongoing struggle between Radial Islam and established regimes in the Middle East.

The question being asked in Israel and in corridors of power in the Middle East and beyond is what happens now on the Israeli political scene after the surprise resignation of IDF Chief of Staff Dan Halutz. The General as well as Prime Minister Ehud Olmert and Defense Minister Amir Peretz are blamed by many Israelis for bungling last summer's war with Hezballah in Lebanon. David Essing spoke to both opposition and coalition MK's:

Former Prime Minister Ehud Barak's entry into the race for Labor party leader, has thrown a wild card into the gathering poker game of Israeli politics. But in the current state of play there are several key moves that have yet to be resolved.

Over the weekend, the internal Palestinian bloodshed has soared in the Gaza Strip and West Bank. The Palestinian power struggle between Hamas and Fatah reached a new peak - seven Palestinians were killed when Hamas raiders attacked the home of a Fatah security officer in the Gaza Strip. More deadly clashes have occurred on the West Bank. Meanwhile, in the West Bank town of Ramallah an Israeli undercover operation to catch a wanted terrorist is detected leading to a shootout that kills five Palestinians and wounds several dozen others. All this as terrorists in the Gaza Strip continue to launch two or three Qassam rockets daily at Israeli targets despite the current 'cease-fire' in Gaza. IDF Brig. Gen. (Res.) Shalom Harari, a senior analyst at the Counter-Terrorism Institute at the Herzlyia Center assesses latest Palestinian developments. Shalom Harari was interviewed by David Essing:

'The internal Palestinian violence in the Gaza Strip is approaching the violence you see in Iraq' - that's the assessment of Shalom Harari, an IDF Brig, Gen. (res). Harari is a leading Israeli expert at the Counter-Terrorism Institute in Herzliya. In an interview with David Essing, Harari analyzes the internecine Palestinian violence and its significance for Israel. He also assesses the chaos in many Arab states against the backdrop of this week's visit by U.S. Secretary of State Condoleezza Rice.

Appearing before the Knesset Foreign Affairs & Defense Committee, Prime Minister Ehud Olmert said there was no doubt that Israels neighbors now understood the price for attacking Israel. This he said was only one of many achievements in the war with Hezbollah. However, nearly all the Knesset Members criticized Olmert and demanded an official judicial enquiry.

'Double talk' was how Israeli officials reacted to Iranian President Ahmadinejad's claim that Iran's nuclear program does not threaten the Jewish state. On the contrary the officials say the heavy water installation at Arak indicates that Iran is also trying to develop nuclear weapons by producing plutonium and not just by enriching uranium.

The IDF commando raid deep into Lebanon's Bekaa Valley near Syria highlights the dilemma now confronting Israel. U.N. Security Council Resolution 1701 based the cease-fire on a robust U.N. force moving into south Lebanon to prevent newed Hezbollah attacks on Israel as well as an arms embargo on the terrorists.

In a speech to the nation, Prime Minister Ehud Olmert sounded loud and clear that Israel is in a fight to the finish with Hezbollah. While the Israel Defense Forces and Hezbollah guerillas continue to slug it out, the Israeli public shows strong support for the Prime Minister. How is the campaign developing on the ground and in the air? Is any end in sight as international mediators start arriving in capitals of the Middle East?

Israel has issued an ultimatum to Palestinian leadership demanding the immediate return of the IDF soldier who was abducted by Palestinian attackers from the Gaza Strip. Prime Minister Ehud Olmert has held consultations with defense officials and the security cabinet to decide on the Israeli response to what is being viewed as a grave escalation. The assault came near Kibbutz Kerem Shalom.

The armed confrontation between Hamas and Fatah erupted in several bloody clashes this week. It has all the signs of an internal power-struggle with neither side apparently ready to give in after Fatah lost control to Hamas in the recent election. Shalom Harari, a leading Israeli analyst on the Palestinians discusses various aspects and the outlook in an interview with IsraCast's David Essing.

The Knesset has approved the new coalition government of Prime Minister Ehud Olmert by a vote of 65-49 in the 120 Member parliament. In presenting his cabinet, Olmert declared that he would carry out a unilateral pullback to a new defense line on the West Bank, if there were no able Palestinian partner. The new line would include the settlements blocs and Israel would view it as a border until such time that the Palestinians were ready to halt the terrorism, recognize Israel and previous agreements with the Palestinians.